Problem
The U.S. Postal Service (USPS) has a constitutionally guaranteed monopoly on first-class mail. In 2010, it charged 44¢ for a stamp, which was not the profitmaximizing price-the USPS goal, allegedly, is to break even rather than to turn a profit. Following the postal services in Australia, Britain, Canada, Switzerland, and Ireland, the USPS allowed Stamps to sell a sheet of twenty 44¢ stamps with a photo of your dog, your mommy, or whatever image you want for $18.99 (that's 94.95¢ per stamp, or a 216% markup). Stamps keeps the extra beyond the 44¢ it pays the USPS. What is the firm's Lerner Index? If Stamps is a profit-maximizing monopoly, what elasticity of demand does it face for a customized stamp?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.